Ascot Resources Commences Diamond Drilling on the Mt. Margaret Property

Thursday, Sep 02, 2010

Ascot Resources Ltd. (TSX VENTURE:AOT) ("Ascot") is very pleased to announce the drilling has commenced as of September 1, 2010 on the Mt. Margaret property in the St. Helens Mining district of Skamania county in Washington state. Ascot is drilling the first of an initial 14 hole diamond drill program within the historic deposit to confirm historical grades and to start filling large internal gaps in the system. Drilling is contracted to More Core Drilling Ltd. and will consist of approximately 5,000 meters of NQ2 diamond drilling.

The Mt. Margaret property covers a large portion of the undeveloped resource known as the Mt. Margaret deposit. This is one of the largest of the Cu-Mo-Au-Ag calc-alkaline porphyries of Miocene age in Washington state. Since discovery in 1969 Duval Corporation conducted numerous exploration programs and mine/metallurgical studies on Mt. Margaret deposit until the eruption of Mt. St. Helens halted all fieldwork in 1980. The Mt. Margaret porphyry copper-molybdenum-gold-silver deposit is located 22.5 km southwest of Randle Washington in Skamania county. The Mt. Margaret deposit was discovered by Duval Corporation in 1969 and was actively explored annually from 1971-1980. By 1980, a total of 105 diamond drill holes totaling 20,729 metres had been completed. This work defined a geological resource, at a 0.33% CuEq cut-off of 523 million tonnes grading 0.36% Cu, 0.011% Mo, 0.24 g/t Au and 1.6 g/t Ag(i) containing 4.1 billion pounds of copper, 4.04 million ounces gold and substantial resources of molybdenum and silver. This drilling is based largely on vertical drilling with holes often spaced in excess of 150 meters apart. The 2010 drilling will test between historic holes and will be consist of a series of angled holes.

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 Mt. Margaret Geological Resource(i) -Source (CIM Special Volume 37, 1986) 

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                            Cu Grade    Mo Grade  Gold Grade   Silver Grade

                  Tonnes          (%)         (%)        g/t            g/t

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Geological                                                                 

Resource           523MT        0.36       0.011        0.24            1.6

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(i) Geological Resources for the Mt. Margaret deposit are referenced in CIM

    Special Volume 37 as well as several USGS and GSC databases. These

    historical resource estimates predate the implementation of National

    Instrument 43-101 ("NI 43-101") guidelines and are not compliant with

    current accepted reserve and resource classifications as set forth by

    Canadian Institute of Mining and Metallurgy, Aug 20, 2000 (CIM

    Guidelines). The Mt. Margaret resource estimates are considered relevant

    as they have been calculated on the basis of 20,729 metres of diamond

    drilling in 105 drill holes, However, Ascot has not completed the work

    necessary to have the historical estimate verified by a Qualified Person

    as a current mineral resource or mineral reserve estimate. The Company

    is not treating the estimate as a current NI 43-101 defined resource or

    reserve estimate and the historical estimate should not be relied upon.

    There is no current economic evaluation that demonstrates the potential

    economic viability of the stated resources therefore none of the

    geological resources should be considered "reserves" under current CIM

    Guidelines.

The Qualified Person responsible for review of the technical data in this news release is Graeme Evans, P.Geo. Mr. Graeme Evans is independent of the Company and a qualified person for the purposes of NI 43-101.

 

Source: Market Wire